Which option correctly describes the purpose of Vendor Bills in NetSuite?

Vendor Bills in NetSuite are used primarily to track obligations or liabilities the business has towards its vendors. When a company receives goods or services from a vendor, a vendor bill is created to formally record that the company owes money for those goods or services. This not only helps in managing accounts payable but also keeps accurate financial records by recognizing expenses in the appropriate accounting period.

When a vendor bills a company, it reflects on the company's balance sheet as a liability until the payment is processed. This is a critical aspect of managing vendor relationships and ensuring that the company's finances reflect accurate amounts due. The capability to track these liabilities helps businesses maintain cash flow management and planning.

The other options do not correctly capture the primary function of Vendor Bills. Tracking inventory shipments relates more to inventory management processes rather than financial obligations. Recording customer payments pertains to the accounts receivable side of the business, while managing employee reimbursements is distinct from vendor transactions and relates to employee expense management.